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The Project

The Department of Commerce is pursuing the project eTRADE, the purpose of which is to facilitate foreign trade in India by way of promoting effective and efficient delivery of services by various regulatory / facilitating agencies involved in foreign trade so as to enable the trade to avail services from these agencies in online environment. The project is a Mission Mode Project (MMP) under National eGovernance Plan (NeGP) which is a part of Digital India Program and monitored at the level of Cabinet Secretary. The secretariat for the NeGP is Department of Electronics and Information Technology (DeitY). The role of Department of Commerce for the project is as given below:

  • Nodal/Line Ministry for implementation of the eTRADE project under Digital India program
  • Responsible for
    • Trade facilitation for improvement in ease of doing business
    • Requirement analysis for trade friendly systems
    • Inter agency business process re-engineering
    • Community partners are pursued for development of trade friendly systems
    • Review of the project and time bound implementation for various scheduled activities
    • Resolution of inter-agency issues
    • UNLOCODEs for Indian trade and transport locations
    • Integration of international standards and trade facilitation recommendations of UNCEFACT (UN Centre for Trade Facilitation and Electronic Business)
    • Representation at various national and international forums like UN Centre for Trade Facilitation and Electronic Business (UN/CEFACT), Asia Pacific Council for Trade Facilitation (AFACT), ESCAP on eTRADE issues
The monitoring structure of the project eTRADE is as given below.

monitoring structure

 

eTRADE Community

 

community partners

Stakeholders:

The major stake holders of the project are foreign trade regulatory/ facilitating agencies like Customs, Directorate General of Foreign Trade (DGFT), Seaports, Airports, Container Corporation of India (CONCOR), Inland container Depots(ICDs)/ Container Freight Stations (CFSs), Banks, importers/exporters, agents, airlines/shipping lines.

Objective of the project:

  • Efficient, transparent, secure delivery of services by trade regulatory/facilitating agencies in 24X7 environment.
  • Simplify procedures and reduce the transaction cost and time.
  • Introduce international standards and best practices

Services Covered:

  • E-delivery of services / clearances by community partners like Customs and Custodians at SeaPorts, Airports and ICD/CFSs, to exporter, importer, agents
  • E-filing of export/import documents by exporter, importer, agents etc. to Customs and Custodians at SeaPorts, Airports and ICD/CFSs.
  • Electronic exchange of documents between community partners i.e. Customs and Custodians at SeaPorts, Airports, ICD/CFSs.
  • e-Payment by exporter, importer, agents for
    • Custom duties;
    • DGFT's license fee and
    • Charges (handling/freight, etc) of Custodians at SeaPorts, Airports, ICD/CFSs .

Achievements:

  • Simplification of procedures
  • Re-engineered inter agency interfaces
  • Digital signature integration
  • ePayment integration
  • Significant reduction in transaction time of services (Detail given below)
  • Reduction and early detection of frauds
  • eTRADE has won four eASIA Awards till date.
  • e-BRC has won the ‘eASIA Award 2013’ under ‘Trade Facilitation category’.
  • PCS has won the award from International Association of Ports and Harbors “IAPH Information (IT) Award”

Impact/ benefits of EDI and steps taken/ methodology adopted for elimination of redundant and duplicate data entry

1. Community Partner: DGFT
The impact of EDI in terms of time and cost savings

Process

Time saving

Cost reduction

Other benefits

Issuance of various authorizations i.e. Annual Advance authorization, EPCG and DEPB

Before

After

Before

After

Before

After

15 days

6 Hrs.
Saving more than 90%.

Cost on documentation, follow up visits.

Cost reduced by 50-70% with reduced paper work and visits, in major regional offices.

Lack of information.

Lack of inter departmental coordination.

Increased transparency on procedural aspects.

Better integration with customs and other partners.
Easy tracking.

2. Community Partner: CONCOR

The impact of EDI in terms of time and cost savings

PROCESS

TIME SAVING

COST SAVING

OTHER BENEFITS

Before EDI

After EDI

Before EDI

After EDI

Before EDI

After EDI

Processing of Import Landing Certificate

3 to 4 Days

20 Minutes

Daily bundles of hard copies of import containers unloaded used to get generated and then sent to Customs through Courier after signing by different persons.

Cost Saving in terms of paper, time, manpower and systems usage.

Many Data Entry Errors and there was no authenticity of data entered.

No data entry errors as the entire process is online.

Processing of Export General Manifest

2-3 days

45 Minutes

Daily bundles of hardcopies used to get generated of export train summaries and the entire data used to get punched in the Custom System.

Cost Saving in terms of paper, time, manpower and systems usage.

Many Data Entry Errors and there was no authenticity of data entered.

No data entry errors as the entire process are online.

Processing of Import Bill of Entry

3 Minutes

1 Minute

Staff used to spend more time in data entry.

Cost saving in terms of manpower and Systems usage.

a) Less authenticity and accuracy of data.

b) Efficiency of staff was less due to more data entry.

More authenticity and accuracy of data.

Efficiency of staff has increased due to less data entry.

Processing of Export Forwarding Note

4 Minutes

1 Minute

Staff used to spend more time in data entry.

Cost saving in terms of manpower and Systems usage.

a) Less authenticity and accuracy of data.

b) Efficiency of staff was less due to more data entry.

More authenticity and accuracy of data.

Efficiency of staff has increased due to less data entry.

3. AIRPORTS
Community Partner: Airports Authority of India- Chennai Airport
The impact of EDI in terms of time and cost savings

PROCESS

TIME SAVING

COST SAVING

OTHER BENEFITS

Before EDI

After EDI

Before EDI

After EDI

Before EDI

After EDI

Flight Manifest Submission(Hrs)

4 Hrs.

 

 

 

15 min.

 

 

3-4 Sets of hardcopies of Manifest were generated by airlines.

Airlines saved cost of Paper, machine & Manpower

 

Airline Used to submit the hardcopy of Flight Manifest on average, 4 hrs after the landing of flights

Segregation of the Flight 8 - 9 Hrs.

Data feeding time 3-5 Hrs.

  • Electronic Message exchange from Customs to Custodian prior to landing of the flight.
  • It helps the Custodian to lineup the resources much before the cargo arrives in the warehouse.
  • Prior receipt of flight message reduced the segregation time from 8.5 Hrs to 6 Hrs.
  • It almost eliminates the Data Feeding time. Data get entered on click of the button.

Generation of Bank Challan (BC) for Custodian Charges for Import Cargo Clearance through Web.

2 Hrs.

Nil
Online generation of LS/BC & If CHA visited counters then 01 hrs.

Manpower cost of CHAs

Approximately 50% Manpower required.

  • CHAs required to come in Queue for Generation of BC
  • Extra manpower cost for CHAs.
  • More Counters, more Manpower Cost and Infrastructural Cost to Custodian(s).
  • Cost saving and better Manpower Utilization by CHAs and Custodian(s).
  • No time for generation of Document. Therefore no time-limit for Generation of BC.
  • Improved Transparency as from the comforts of their offices, no human intervention - no delays.
  • Payment of Custodian charges online through web. i.e. Better Funds Management.
  • Efficient and better utilization of web systems.

Dwell time (Hours) IMPORT

109

98

 

 

60:40 ratio of TSP: Demurrage

71:29 ratio of TSP: Demurrage.

  • 11 % Reduction in Demurrage Collection.

Online issuance of Carting Order by Airlines on DIAL's Online Website.

2 Hrs.

Nil

Paper cost to Airlines.

Manpower deployment by Agencies to obtain hardcopy of carting order from Airlines office.

99 % saving of paper cost

Approximately 50% Manpower saving / better utilization by agencies.

  • Consolidators visit the airlines office and obtained the Carting Order in person.

 

  • Human intervention and delays.
  • Airlines issue the Carting order on line and have better Control over the process.
  • Secured - Airlines can issue Carting Order after verification of the consignment details online.
  • Transparency- no Human intervention - no delays.
  • No fraudulent Carting Orders - secured from the custodian point of view.
  • Shipper can obtain Carting Order through online Cargo Website and can check its status.
  • No manpower required at Agencies end for collection of hardcopy of the carting order personally.

Issuance of Export Terminal Charge receipt.(TC)

1 Hrs.

Nil

More Manpower and Infrastructure required by
Terminal Operator

More manpower required by
Agents

Manpower Cost Saving

Approximately 20% by Terminal operator.

Approximately 50 % by Agents

  • CHAs required to come in Queue for Generation of TC
  • Extra manpower of CHAs

More Counters more Manpower Cost and Infrastructural Cost at Custodian ends.

  • Cost saving and better Manpower Utilization by CHAs and Custodian.
  • No need to visit cargo terminal for TC generation.
  • No time limit for generation of Document. Therefore no time-limit for Generation of TC from the comforts of their office.
  • Transparency no human intervention - *no delays.
  • Payment of Custodian charges online through web. i.e. Better Funds Management.
  • Efficient and better utilization of web systems.

Recording of daily transactions at user level.

2-4

Nil

More Manpower Resources by trade partners

Nil

  • Maintaining the record registers.
  • Jotting down each and every transaction.

 

  • Summary Reports of transactions performed are available online, need not to maintain record registers.
  • Online MIS reports/status updated instantly.

Import / Export Tracking

10-15 Hrs.

Instant

More Input Cost

Nil

  • Need to visit the cargo terminal to check the status of cons.
  • Manpower deployment to Airlines offices to enquire about cargo.
  • Actual shipper/ exporter can keep online track of consignment clearance status.
  • Transparency - Owner can check the payment made by the agents.

4. Community Partner: Indian Ports Association (IPA)
The impact of EDI in terms of time and cost savings
CASE STUDY: KOLKATA PORT TRUST (Kolkata Dock System)

Messages

Time taken before PCS implementation

Take taken after PCS implementation

Remarks

Vessel Profile(submission and Approval)

2 days(48 Hrs)

Average 1-2 Hrs

In many cases it is immediate

Voyage Registration and VCN Allocation

2 days (48 Hrs)

Average 1-2 Hrs

Berth Request and Berth Allocation

Next day in the Berthing  meeting

Immediate without any manual intervention

Container Related Messages

Physical Submission

All the documents are submitted by the Users from their office and these are uploaded in the system

Cargo Related Messages -
Delivery  Orders

5-6 Hrs

ONLINE within 1 Hrs of submission